DEFENSE AGENCIES Fleet Alternative Fuel Vehicle Acquisition Report Compliance with EPAct and E.O in Fiscal Year 2008

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1 DEFENSE AGENCIES Fleet Alternative Fuel Vehicle Acquisition Report Compliance with EPAct and E.O in Fiscal Year 2008 This report summarizes the Department of Defense (DoD), Defense Agencies, DoD Field Activities and Joint Staff (hereafter referred to collectively as Defense Agencies ) fiscal year (FY) 2008 fleet performance. This report meets the requirements of the Energy Policy Act (EPAct) of 1992 (Public Law ), as amended by the Energy Conservation Reauthorization Act of 1998 (Public Law ), and in meeting the goals set by Executive Order (E.O.) 13423, Greening the Government through Federal Fleet and Transportation Efficiency (Exhibit 1). Section 705 of the EPAct of 2007 (Public Law ), amended the due date of this report to February 15 th. Exhibit 1. DEFENSE AGENCIES Performance in Meeting EPAct and E.O Requirements, FY 2008 Authority/ Mandate EPAct E.O Performance Measure Goal/Requirement Defense Agencies Performance in FY 2008 Alternative fuel vehicle (AFV) acquisitions Alternative fuel use in AFVs 75 percent of the 466 covered light-duty vehicles (LDV) acquired in FY 2009 must be AFVs By FY 2006, increase alternative fuel use in AFVs to a majority of the total fuel used in those vehicles Acquired 351 AFVs for total of 378 credits; or 233 percent of covered acquisitions Achieved 2.78 percent alternative fuel use in AFVs Fuel economy of light-duty acquisitions By FY 2006, increase fuel economy by 3 miles per gallon (mpg) compared to FY 1999 baseline of 17 mpg 20 GGE per vehicle. A 4 percent increase from last year. Petroleum consumption By FY 2006, reduce covered consumption by 20 percent compared to FY 1999 baseline 1 of 7,542,469 gasoline gallon equivalent (GGE) Consumed 1,220,728 GGE 1 Baseline adjusted in FY 2006 to account for unreported fuel used in vehicles leased from the General Services Administration. EPAct Compliance For the 9th consecutive year, Defense Agencies exceeded its EPAct requirements. As a result of its AFV acquisitions Defense Agencies in FY 2008 earned AFV acquisition credits amounting to 233 percent of its covered vehicle acquisitions, which is 165 percentage points higher than the 75 percent AFV acquisition requirement (Appendix A). In short, Defense Agencies: Acquired 162 EPAct-covered LDVs. A total of, 351 were AFVs were purchased for the Defense Agencies 256 more vehicles than the 75 percent compliance requirement of 95 AFVs. 1

2 Credits In FY 2008, Defense Agencies earned 378 credits. Federal fleets earn one credit for every bi- or flexible-fuel AFV acquired and for every 450 gallons of neat biodiesel (B100) or 2,250 gallons of B20 (20 percent biodiesel and 80 percent petroleum diesel) used. Additional credits are earned for AFVs that operate exclusively on alternative fuels. For this reporting period, Defense Agencies earned 21 credits for AFV acquisitions only. Vehicles Flexible-fuel vehicles (FFVs), that can run on E85 (85 percent ethanol, 15 percent gasoline) or gasoline, were the AFV of choice in FY Of the 284 AFVs acquired in FY 2008, 351 of them were FFVs. FFVs capable of operating on E85 comprise the majority of Defense Agencies AFV fleet (Exhibit 2), with CNG vehicles making up most of the balance. As the availability of CNG vehicle models decreases, these vehicle types will become less prevalent in Defense Agencies fleet. Of Defense Agencies 1,618 AFVs. 41 CNG E-85 1,618 Exemptions Of the 351 total LDVs acquired by Defense Agencies in FY 2008, 296 vehicles (84 percent) were considered exempt from compliance with EPAct. Exemptions are granted for fleet size, geographic location or use outside a Metropolitan Statistical Area/Consolidated Metropolitan Statistical Area (MSA/CMSA), and use for law enforcement. In FY 2008 total exemptions were as follows: Fleet Size (0) Geographic (0) Law Enforcement (8) Non-MSA/CMSA Operation/Fleet (0) 701 Waiver (296) FY 2009/2010 Projected Acquisitions The attachments to this report offer a detailed look at Defense Agencies FY 2008 acquisitions and its projected acquisitions for FY 2009 and FY Defense Agencies have exceeded its annual EPAct acquisitions requirements and plans to continue to exceed these requirements in the next two years (Appendices B and C). E.O Compliance E.O calls for each agency to reduce vehicular petroleum consumption by 20 percent by the end of FY 2006 and specifies three approaches agencies should take to achieve this goal: Comply with EPAct s annual AFV acquisition requirements (as previously discussed). 2

3 Use alternative fuels in AFVs the majority of the time. Increase the fuel economy of LDV acquisitions (excluding AFVs) by 3 mpg by the end of FY 2008, as compared to baseline FY 1999 acquisitions. Use Alternative Fuels in AFVs In FY 2008, 2.78 percent of the fuel used in Defense Agencies AFVs was alternative fuels. As more infrastructure becomes available, this percentage will increase. At Defense Agencies permitted sites, Defense Agencies plan, if economic analysis warrants, to invest in building new alternative fuel stations. As these stations come on line, more alternative fuel will be available for the bi- and flexible-fuel vehicles that dominate the Defense Agencies AFV fleet. Defense Agencies will continue to work toward greater access to alternative fuel for fleet vehicles. Exhibit 3 compares Defense Agencies fuel use in FY 2008 and FY Alternative fuels use has increased from FY 01(the first year alternative fuel data was available). As mentioned before, we expect this figure to increase as more commercial fueling infrastructure becomes available. Credits available to commercial vendors under EPAct 2007 should speed construction alternative fuel infrastructure. Exhibit 3 Defense Agencies Total Covered Fuel Use Improve Fuel Economy Toward the petroleum reduction goal set forth in E.O , the E.O. calls for each agency to increase the fuel economy of its LDV acquisitions (excluding AFVs). Each year since FY 1999, Defense Agencies has increased the average fuel economy of its vehicles and achieved a 5.5 mpg improvement in FY It has been a long standing policy of Defense Agencies to acquire the smallest, most fuel efficient vehicles that meet our mission requirements. Fuel Use FY 1999 (GGE) see note FY 2008 (GGE) Alternative Fuel B100 NA 12,384 CNG E85 14,256 20,673 Electricity NA 0 LNG NA 0 LPG Total Alternative Fuel Use 15,533 33,956 Petroleum Diesel 304, ,975 Gasoline 2,158, ,797 Total Covered Petroleum Use 2,462,777 1,186,772 Total Covered Fuel Use 2,462,777 1,220,728 Alternative Fuel Use as a Percentage NA 2.78 of Total Fuel Use Note: No alt fuel data available from FY99. CNG, LPG and E85 data from FY 01. Petroleum Consumption Progress Report In FY 2008, Defense Agencies consumed 33,956 GGE of alternative fuels, thereby reducing gasoline and diesel fuel consumption in 1,669 vehicles. Because of the Defense Agencies support for the ongoing war in Afghanistan and Iraq and the lack of commercial alternative fuel infrastructure, petroleum consumption has not been reduced by the targeted 20 percent goal. Defense Agencies Fleet Success In FY 2008 Defense Agencies acquired 351 AFVs for a 84 percent AFV acquisition rate, that is 14 percent higher than the 75 percent AFV acquisition requirement under EPAct. The Defense 3

4 Agencies receive most of their vehicles from GSA fleet and can only acquire what is offered by GSA. Summary and Conclusions In FY 2008, Defense Agencies did meet its AFV acquisition requirements and expects to meet or exceed them in FY 2009 and FY Toward compliance with E.O , Defense Agencies achieved a 5.5 mpg increase in fuel economy. Defense Agencies will continue its efforts to reduce petroleum consumption through increased alternative fuel usage, accelerated replacement of conventional vehicles with AFVs, and acquisition of hybrid and fuel efficient vehicles. Due to a major reorganization in FY2005, Defense Security Services transferred 1,592 vehicles to OMB. The results of this transfer greatly reduced the GGE consumption for the entire Defense Agencies Exhibit. The reorganization of Defense Security Services will affect the relationship between the 1999 baseline in future reporting. Exhibit 4 summarizes Defense Agencies FY 2008 performance. Exhibit 4. Defense Agencies Performance in Meeting its Requirements FY 1999 Baseline FY 2008 Change FY 1999 vs. FY 2008 EPAct Note: Baseline data not available Alternative Fuel Use in AFVs (GGE) Note: No alt fuel data available from FY99. Data from FY 01 14,830 (see note) 33,956 Fuel Economy of LDV Acquisitions Petroleum Consumption 2,462,777 GGE 1,220,728 GGE 50 percent 4

5 Appendix Appendix A Actual Defense Agencies FY 2008 Vehicle Acquisitions Actual FY 2008 Light-Duty Vehicle Acquisitions Leased Purchased Total Total Vehicle Inventory Total number of Light-Duty (8,500 GVWR) - Vehicle Acquisitions ,936 Fleet Size Geographic Law Enforcement Non-MSA Operation (fleet) Exemptions Non-MSA Operation (vehicles) (n/a) EPACT Covered Acquisitions ,629 Actual FY 2008 AFV Acquisitions Total Vehicle Vehicle Leased Purchased Total Inventory Sedan CNG Bi-Fuel Subcompact Sedan E-85 Flex-Fuel Compact Sedan E-85 Flex-Fuel Midsize Pickup 4x2 CNG Bi-Fuel Pickup 4x2 E-85 Flex-Fuel Pickup 4x4 CNG Bi-Fuel Pickup 4x4 E-85 Flex-Fuel SUV 4x2 E-85 Flex-Fuel SUV 4x4 E-85 Flex-Fuel Minivan 4x2 (Passenger) CNG Dedicated Minivan 4x2 (Passenger) E-85 Flex-Fuel Minivan 4x4 (Passenger) E-85 Flex-Fuel Minivan 4x2 (Cargo) E-85 Flex-Fuel Van 4x2 (Passenger) E-85 Flex-Fuel Van 4x2 (Cargo) CNG Bi-Fuel Van 4x2 (Cargo) CNG Dedicated Van 4x2 (Cargo) E-85 Flex-Fuel Pickup MD CNG Bi-Fuel Van MD (Passenger) CNG Bi-Fuel Van MD (Passenger) E-85 Flex-Fuel Van MD (Cargo) CNG Bi-Fuel Total Number of AFV Acquisitions ,669 Zero Emission Vehicle Credits Dedicated Light-Duty AFV Credits Dedicated Medium-Duty AFV Credits Dedicated Heavy-Duty AFV Credits Biodiesel Fuel Usage Credits - Actual Total AFV Acquisitions with Credits AFV Percentage of Covered Light-Duty Vehicle Acquisition 233% 5

6 Appendix B Planned Defense Agencies FY 2009 Vehicle Acquisitions Planned FY 2009 Light-Duty Vehicle Acquisitions Leased Purchased Total Total number of Light-Duty (8,500 GVWR) - Vehicle Acquisitions Fleet Size Geographic Law Enforcement Non-MSA Operation (fleet) Exemptions Non-MSA Operation (vehicles) EPACT Covered Acquisitions Planned FY 2009 AFV Acquisitions Vehicle Leased Purchased Total Sedan CNG Bi-Fuel Subcompact Sedan E-85 Flex-Fuel Compact Sedan E-85 Flex-Fuel Midsize Pickup 4x2 CNG Bi-Fuel Pickup 4x2 E-85 Flex-Fuel Pickup 4x2 LPG Bi-Fuel Pickup 4x4 E-85 Flex-Fuel SUV 4x2 E-85 Flex-Fuel SUV 4x4 E-85 Flex-Fuel Minivan 4x2 (Passenger) E-85 Flex-Fuel Van 4x2 (Cargo) CNG Bi-Fuel Van 4x2 (Cargo) CNG Dedicated Pickup MD CNG Bi-Fuel SUV MD E-85 Flex-Fuel Van MD (Passenger) CNG Bi-Fuel Total Number of AFV Acquisitions Zero Emission Vehicle Credits Dedicated Light-Duty AFV Credits Dedicated Medium-Duty AFV Credits Dedicated Heavy-Duty AFV Credits Biodiesel Fuel Usage Credits - Planned Total AFV Acquisitions with Credits AFV Percentage of Covered Light-Duty Vehicle Acquisition 269% 6

7 Appendix C Projected Defense Agencies FY 2010 Vehicle Acquisitions Projected FY 2010 Light-Duty Vehicle Acquisitions Leased Purchased Total Total number of Light-Duty (8,500 GVWR) - Vehicle Acquisitions Fleet Size Geographic Law Enforcement Non-MSA Operation (fleet) Exemptions Non-MSA Operation (vehicles) EPACT Covered Acquisitions Projected FY 2010 AFV Acquisitions Vehicle Leased Purchased Total Sedan E-85 Flex-Fuel Compact Sedan E-85 Flex-Fuel Midsize Pickup 4x2 CNG Bi-Fuel Pickup 4x2 E-85 Flex-Fuel Pickup 4x4 CNG Bi-Fuel Pickup 4x4 E-85 Flex-Fuel SUV 4x2 E-85 Flex-Fuel SUV 4x4 E-85 Flex-Fuel Minivan 4x2 (Passenger) E-85 Flex-Fuel Minivan 4x2 (Cargo) E-85 Flex-Fuel Van 4x2 (Passenger) E-85 Flex-Fuel Van MD (Passenger) CNG Bi-Fuel Van MD (Cargo) CNG Bi-Fuel Total Number of AFV Acquisitions Zero Emission Vehicle Credits Dedicated Light-Duty AFV Credits Dedicated Medium-Duty AFV Credits Dedicated Heavy-Duty AFV Credits Biodiesel Fuel Usage Credits - Projected Total AFV Acquisitions with Credits AFV Percentage of Covered Light-Duty Vehicle Acquisition 327% 7

8 Appendix D Covered Petroleum Consumption in GGE Baseline FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 F Gasoline 954,109 1,135, ,797 Diesel 197, , ,394 B ,737 44,581 Total 1,900,263 1,151,289 1,455,511 1,186,772 Target 1,862,257 1,824,252 1,786,247 1,748,241 1,710,236 1,672,231 1,634,226 1,596,220 1,558,215 1 Compliant Yes Yes Yes * B20 is the diesel component from covered biodiesel consumption. Alternative Fuel Consumption in GGE Baseline FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 F CNG LNG LPG E-85 57,357 18,124 20,673 Electric M B ,434 12,384 Hydrogen Total 47,501 57,962 27,952 33,956 Target 52,251 57,476 63,223 69,546 76,500 84,150 92, , ,004 Compliant Yes No No 8

9 Appendix E Acronym AFV B100 B20 CNG XXX E85 E.O. EPAct FFV FR FY GGE GVWR HD INL LD LDV LNG LPG MD MPG MSA/CMSA SUV List of Acronyms Phrase Alternative Fuel Vehicle Biodiesel (100 percent, neat) Biodiesel (20 percent biodiesel, 80 percent petroleum diesel) Compressed Natural Gas U.S. Department of Energy Ethanol (85 percent ethanol, 15 percent petroleum) Executive Order Energy Policy Act Flexible Fuel Vehicle Federal Register Fiscal Year Gasoline Gallon Equivalent Gross Vehicle Weight Rating Heavy-Duty Idaho National Laboratory Light-Duty Light-Duty Vehicle Liquefied Natural Gas Liquefied Petroleum Gas (Propane) Medium-Duty Miles Per Gallon Metropolitan Statistical Area/Consolidated Metropolitan Statistical Area Sport Utility Vehicle 9